- India's textile and apparel exports to the UK could see double-digit growth after the trade pact comes into force on July 15.
- Industry estimates suggest India's share of the UK textile market could rise from about 5 per cent to 10-15 per cent over time.
- Exporters also expect improved stability in West Asia to support trade flows and business planning.
India's textile and apparel industry is preparing for a fresh push into the UK market as the India-UK Comprehensive Economic and Trade Agreement (CETA) comes into force on July 15, removing tariffs on a wide range of products and placing Indian exporters on a more equal footing with key competitors.
The India-UK trade deal gives zero-duty access to 99 per cent of India's exports to the UK, covering nearly the entire value of bilateral trade. For the textile sector, the agreement removes tariffs of up to 12 per cent on textiles and clothing, while duties of up to 16 per cent on leather and footwear products will also be scrapped.
Industry bodies believe the agreement could help India significantly expand its presence in the UK textile market. India exported nearly £1.3 billion (around $1.8 billion) worth of apparel and home textiles to the UK in FY26, accounting for roughly 5 per cent of the market.
Prabhu Damodaran, convenor and secretary of the Indian Texpreneurs Federation (ITF), reportedly said in a news report that the agreement creates a level playing field for Indian suppliers at a time when global buyers are looking to diversify sourcing. He added that the industry expects double-digit growth in exports and sees scope for India's share of the UK market to rise to 10-15 per cent over time.
According to estimates from the UK's Department for Business and Trade, imports from India are expected to increase by around £2.9 billion following implementation of the agreement. Clothing imports could rise by about £475 million, textiles by £175 million and footwear by £55 million.
Closing the gap with competitors
For years, Indian textile exporters have faced a tariff disadvantage in the UK compared with countries such as Bangladesh. Industry leaders believe the agreement could alter that equation.
Ashwin Chandran, chairman of the Confederation of Indian Textile Industry (CITI), reportedly said in a news report that Indian exporters will now be able to compete on more attractive pricing, potentially improving their ability to win orders from UK buyers.
Brokerage firm ICICI Securities said the agreement effectively puts India on par with Bangladesh and Vietnam in the UK market, while offering an advantage over several other exporting nations. The brokerage noted that Indian textile exports currently face tariffs of around 12 per cent in both the UK and European Union markets, with the UK duties set to fall to zero once the agreement takes effect.
The firm also pointed to India's relatively low labour costs, strong cotton availability and the recent removal of customs duty on cotton imports as factors that could strengthen competitiveness. Large integrated textile manufacturers with established quality standards are expected to be among the main beneficiaries.
West Asia stability adds to industry optimism
The implementation timeline for the trade pact comes as exporters watch developments in West Asia, a region that serves both as an important market and a key transit route for Indian textile shipments.
Industry executives believe greater stability in the region could help ease business uncertainty and support export planning. Chandran reportedly said that improved prospects for stability in West Asia, combined with clarity on the implementation date of the India-UK agreement, would help companies negotiate with existing customers and pursue new business opportunities with greater confidence.
According to ICICI Securities, several apparel and home textile buyers in the UK and Europe have already begun evaluating Indian manufacturing facilities ahead of potential sourcing shifts once the agreement comes into force.
The brokerage expects benefits from the UK trade pact to begin reflecting in company performance from FY27, while gains from a proposed India-European Union trade agreement could become visible from FY28.
